Troubled Miner Argo Blockchain to Reduce Debt by $41 Million by Selling Helios Mining Facility to Galaxy Digital
- Argo Blockchain has secured a $65 million deal with Galaxy Digital to sell its Helios facility in Texas.
- The deal includes real estate in Dickens County, Texas, and other assets.
- Galaxy Digitals will also offer the crypto miner $35 million as an asset-oriented loan.
- Argo estimates the deal will reduce its debt by $41 million and ease its operations further.
Amidst prevailing market conditions, crypto mining firm Argo blockchain has secured an agreement with Galaxy Digital, a crypto-financial service company, to sell its Helios facility in Texas for $65 million. According to a blog post, Argo said it is selling the facility on behalf of its subsidiary.
The deal also involves acquiring property in Dickens County, Texas, and other assets.
Meanwhile, Galaxy Digitals is expected to offer the crypto miner a new asset-oriented loan amounting to $35 million. This loan is enveloped with an initial term of 36 months.
Argo plans to obtain the loan through some of its collateral, including 23,619 Bitmain S19J Pro mining machines in Helios and some other devices in Argo’s Canadian data centers.
Argo Hopes to Avert Bankruptcy With the Deal
The crypto miner believes this deal will help in its efforts to avoid bankruptcy. As reported, the cash proceeds from the sale of Helios and a portion of the loan proceeds will be used to pay off existing debt, prepayment interest, and other fees.
Following this repayment, the Company will receive approximately $6 million from a collateral account controlled by NYDIG ABL LLC.
According to Argo, the deal will reduce its debt by $41 million and further ease its operations.
Reacting to the development, Argo CEO Peter Wall said the deal would help transform Argo owing to its benefits.
"This transaction with Galaxy is a transformational one for Argo and benefits the Company in several ways. It reduces our debt by $41 million (£34 million) and provides us with a stronger balance sheet and enhanced liquidity to help ensure continued operations through the ongoing bear market," Wall stated.
The agreement is expected to come to a close today. Meanwhile, Galaxy Digitals is pursuing a fixed-price power acquisition deal to enable Agro to enjoy a better rate.
On the Flipside
- Argo’s shares, which have fallen 92% this year, gained more than 90% after the sale agreement with Galaxy Digital Holdings became public.
- From today, Argo Blockchain will resume trading on the NASDAQ, after being suspended temporarily yesterday.
Why You Should Care
The current market has wreaked havoc on crypto, including mining firms. As a result, some companies, like Core Scientific, announced bankruptcy. However, this recent development may ease some of the financial troubles for Argo Blockchain, one of the top Bitcoin mining companies in the world, during this challenging time.
Discover more stories about crypto mining firms:
Bitcoin Miner Core Scientific Files for Bankruptcy, Continues Mining while Repaying Debt Holders
Argo Blockchain Requests Nasdaq Suspend Trading of Their Shares Due to Restructuring
Text source: DailyCoin.com
